Tip #13 - The hidden costs of share market investing

Every week we post a tip that we hope will help you become a successful share market investor.

Tip #13 — The hidden costs of share market investing

We all want to maximise returns on our share market portfolios. However, many do-it-yourself investors fail to consider the numerous costs associated with managing their portfolios, and the impact that these costs can have on their overall returns. There are three main areas where controllable costs are incurred. The first is seeking advice on which shares to buy and sell. Then there is the cost (brokerage) of actually doing the buying and selling. And finally there is the cost of portfolio administration. This includes the tedious – but essential – reporting associated with effectively managing a share portfolio.

This information is not a recommendation nor a statement of opinion. You should consult an independent financial adviser before making any decisions with respect to your shares in relation to the information that is presented in this article.